In a statement, the BSP said it recorded a balance of payments surplus of $88 million in August 2024, reversing the $57-million deficit in August 2023.
The balance of payments represents the net value all the country’s transactions, public and private with the rest of the world, with a surplus meaning the Philippines is earning more than it spends, and deficit meaning the opposite.
August’s net inflows helped bring the year-to-date balance of payments to a $1.6-billion surplus. This figure, however, remains below the $2.1 billion surplus recorded in the same period in 2023.
Alongside foreign investment income, continued net inflows from personal remittances, foreign direct investments, and government borrowings contributed to the positive dollar flows position.
The overall surplus also boosted the country's gross international reserves, which rose to $107.9 billion by the end of August, up from $106.7 billion in July. This reserve level is sufficient to cover 7.8 months of imports and is six times the country’s short-term external debt.
The narrowing trade deficit also played a role in the dollar flow surplus, reflecting a more favorable external environment for the Philippines as it continues to manage its foreign obligations and maintain healthy foreign exchange reserves.
